When it comes to female financial planning, it is evident that we have a long way to go before financial gender equality is achieved. According to statistics compiled by Kuvera, an online wealth management company, just one in every five investors in India is a female.
There is no doubt that the number of female investors is increasing. Despite this encouraging trend, males continue to dominate the world of investment. It is obvious that when it comes to financial management, women trail far behind males.
However, there is one area in which women significantly outperform males. According to the study, about 50% more women than men have a plan for their 25th anniversary. Men, without a doubt, need to do more. Retirement, home ownership, and kid education are some of the main financial aspirations on women’s minds.
Another encouraging statistic is that a significant proportion of women originate outside the top six metro areas. Beyond the headlines, statistics indicate that more than 60% of women investors are from India. NCR is the market leader, followed by Bengaluru and Mumbai. Pune was ranked fourth.
Women consider investing to be too dangerous.
The majority of women are hesitant to invest because they believe it entails an excessive amount of danger. Furthermore, when it comes to danger, women and men are from different planets.
Men see money as ‘theirs’ and are willing to risk it. Women, on the other hand, see money as belonging to the home, regardless of how it was gained. As a consequence, women are more careful than males about risking any of their pennies.
Returns on investments are not linked to interest rates but rather to the performance of your assets. This implies two things: there is a danger of ending up with less than you invested, but there is also the possibility of earning above-inflation returns.
Regrettably, the majority of women neglect the second alternative, so missing out on possible rewards. While investing does include some risk, it is not nearly as hazardous as some women believe.
If you put all of your money in a single firm, the risk of losing it all is considerable. However, by diversifying your assets across asset classes (shares, bonds, property, and commodities) and countries, you can mitigate risk since poor-performing investments should be offset by strong performers.
Women have a lower level of confidence when it comes to investing.
If it is not fear of danger that keeps women out of the financial industry, it seems to be a lack of confidence. Only 13% of women believe they have a solid grasp of investing and the stock market.
More tellingly, when asked to estimate their confidence in selecting an investing account, less than a third (32%) of women gave themselves a confidence rating of 6 or higher out of 10. It’s pretty depressing to watch so many women shy away from investing due to confidentiality concerns fueled by long-held stereotypes.
According to another poll performed by Scripbox, a digital money management platform, approximately 30% of women admitted to seeking personal financial education during the epidemic.
30% of them rely on digital investment platforms for financial planning and investing knowledge, 20% on friends and family, and 15% on personal finance publications.
Additionally, one in five women has begun investing for the first time as a result of the epidemic. Mutual funds are the most popular investment vehicle, chosen by 22% of women questioned, followed by stocks and gold. 34% of female investors choose a combination of classic investment vehicles such as fixed deposits, recurring deposits, PPFs, and savings accounts.
Why is investing important for women?
Women confront several financial obstacles throughout their lives. Not only do females make less than men, but in certain situations, they are forced to forego their profession and prospective income to care for their families. As a consequence, women’s financial independence and future are often more unstable and vulnerable.
Women should be more driven than ever to save, invest, and take charge of their financial lives.
The position is difficult but not hopeless. By joining the investing industry, women may reclaim their financial power. Investing, even in small amounts, is an excellent method to prepare ahead and achieve financial independence.